State electricity works to purchase Budapest municipality majority stake in Fogaz

(MTI) – The state energy company Hungarian Electricity Works (MVM) will purchase the Budapest Municipal Council’s 50 percent-plus-one-share stake in Budapest gas company Fogaz by July 31, according to a government resolution published in the official gazette Magyar Kozlony on Tuesday.

MVM signed a contract to purchase the German RWE Gas International’s 49.83 percent stake in Fogaz for 41 billion forints (EUR 131m) on December 19, 2013. The transaction could be closed in the first half of this year after approvals from the authorities and consent from the co-owner Budapest City Council, the signatories said in December.

Fogaz has 820,000 retail and corporate clients.

HVG online reported two weeks ago, citing people close to the ruling Fidesz party, that the government planned to nationalise both Fogaz and Fovarosi Vizmuvek, the capital’s water works company, and make them into non-profits.

Photo: csepel.info

Source: http://mtva.hu/hu/hungary-matters